Is the BP share price good value at 436p?
Bp (LON:BP.) is a large cap engaged in the global energy business, with operations in Europe, North and South America, Australasia, Asia and Africa. The Company provides customers with fuel for transport, energy for heat and light, power for industry, and the petrochemicals products used to make everyday items such as paints, clothes and packaging.
Right now the BP share price appears to represent solid value, as shown in the group's Value Rank of 69. Let's explore this in more detail.
Digging into BP's Value Rank
Looking at BP's StockReport, we can see that the group has a:
- Rolling price to book value of 1.21,
- Trailing twelve month price to earnings ratio of 8.20
- Trailing twelve month price to free cashflow of 11.5
- Rolling dividend yield of 2.56%
- Trailing twelve-month price to sales ratio of 0.43
This combination of financial traits suggests that, while BP stock is not the cheapest, it is far from expensive at these levels and is worth considering - especially if it is exposed to other positive stock market factors as well.
What does this mean for potential investors?
Some of the best quality stocks in the market have defensible models that can deliver high levels of shareholder returns over the long term. But there are no guarantees and it's important to do your own research. Indeed, we've identified some areas of concern with BP that you can find out about here.
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